This was an underwater property. We were able to get a principal reduction because Chase has been giving principal reductions to do penance for its getting caught in the robo-signing scandal.

The principal reduction was $67,000, and the principal deferral was $56,000.

With a principal deferral there are no interest and no payments on the deferred principal. The principal is owing at the end of the loan or when the borrower sells or refinances the property, in this case after 25 years.